EURUSD: Prefer to sell rallies
|EURUSD: 1.0875
The dollar is firm at the end of Tuesday trade while the Euro remains under pressure following Monday’s spike higher after the French election result, and the pair is finishing near the day’s lows of 1.0862.
The momentum indicators now suggest that we are going to see further downside pressure in the days ahead, with both the 4 hour/daily momentum indicators both looking slightly negative. If so, once back below 1.0850, the 200 DMA will provide some support although below there would potentially allow the chart gap to close, which would take the Euro all the way back to 1.0730. On the topside, resistance will be seen at 1.0900 and then at the session high of 1.0932 although I am not sure that we see it up here again today. If wrong, we could then see a move back towards 1.1000 and Monday’s high of 1.1020, a break of which would see little resistance until the channel top at 1.1055 and then the Fibo level at 1.1070.
| 24 Hour: Prefer to sell rallies | Medium Term: Prefer to sell rallies | ||
| Resistance | Support | ||
| 1.1020 | 8 May high | 1.0862 | Session low |
| 1.1000 | Psychological | 1.0851 | (38.2% of 1.0570/1.1020) /26 Apr low |
| 1.0950 | Minor | 1.0825/20 | 200 DMA /24 Apr low |
| 1.0932 | Session high | 1.0795 | (50% of 1.0570/1.1020) |
| 1.0900 | Minor | 1.0740 | (61.8% of 1.0570/1.1020) |
Economic data highlights will include:
ECB Governor, Mario Draghi Speech, US Import/Export Index, Monthly Budget Statement
Interested in EURUSD technicals? Check out the key levels
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